Human resource management (HRM) is one of the organizational functions that are concerned with developing manpower and providing them with fair and beneficial labor practices. According to Edwards and Kuruvilla (2005), HRM is the process of efficiently and effectively developing, allocating, and utilizing human resources for the attainment of the goal of the organization. Subsequent to globalization, the scope and responsibility of HRM personnel have also expanded and broaden–from a domestic HRM to international HRM or briefly known as IHRM. One of the commonalities between domestic HRM and IHRM is in terms of the HRM practices that the two cover. Precisely, both domestic and international HRM is composed of the practices such as HR planning, job analysis, recruitment and selection, performance appraisal and benefits administrations. Both are responsible for training and developing human resources in preparation for future promotion. Both of them provide support to the organization as to how to handle manpower to achieve organizational objectives.
Although such, the two differ in terms of the complexity and difficulty of the human resources they have to handle. Domestic HRM handles employees of a company located within one national boundary. This entails managing people, most likely with similar values, cultural background, and origin, principles, and language. Formulating HRM practices, policies, procedures, and programs in such type of HRM is less challenging compared to IHRM. IHRM handles employees of a company which is located across the .globe or in the international setting. This entails dealing with human resources who have different cultural background, values, norms, and languages. .Aside from that, IHRM needs to handle the different labor policies of the parent country (headquarter office), the host country (location of subsidiary firms).